Location: Wolfe County, KY | Metro: Lee County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 41365 are straightforward. The Standard Area Fair Market Rent (SAFMR) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $880. This figure represents the maximum amount that the housing authority will reimburse landlords for a two-bedroom unit under the Section 8 Housing Choice Voucher program. It's important to note that this SAFMR is specific to ZIP 41365 and does not necessarily reflect the rates in other areas.
Local market rents in ZIP 41365 are currently unavailable, which makes it difficult to compare the SAFMR directly against market conditions. However, understanding the SAFMR is key to managing expectations regarding rental income.
A landlord should be aware that the actual reimbursement received from a voucher is not solely based on the SAFMR. The total payment also includes the tenant's contribution and any utility allowances. Typically, the tenant is responsible for paying 30% of their adjusted income towards rent. This amount can vary depending on the individual tenant's income level but is capped at the difference between the SAFMR and the housing authority's payment standard.
In addition to the tenant's share, there may be utility allowances. These allowances cover a portion of the tenant's electricity, gas, water, and sewer costs. The exact amount varies based on the location and the type of utilities included. For ZIP 41365, these allowances must be factored into the overall reimbursement calculation.
To illustrate, if the SAFMR for a two-bedroom apartment is $880, and the housing authority's payment standard is lower, say $750, then the landlord would receive $750 plus the tenant's 30% contribution and any applicable utility allowances. If the tenant's portion is $130, and the utility allowance is $100, the landlord would receive a total of $980 ($750 + $130 + $100).
This example shows that landlords might actually receive more than the SAFMR due to the tenant's contribution and utility allowances. However, this is contingent upon the specific circumstances of the tenant and the housing authority's policies. The reimbursement gap or surplus depends on these factors and the actual market rent for the property.
Given the SAFMR of $880, landlords in ZIP 41365 should expect to receive close to this amount, possibly slightly higher when including tenant contributions and utility allowances, assuming the market rent is aligned with the SAFMR. If market rents exceed the SAFMR, landlords could face a reimbursement gap, meaning they would need to subsidize the difference. Conversely, if market rents are below the SAFMR, landlords would benefit from a surplus, receiving more than what the market typically demands for a similar unit.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.